Samsung is reportedly considering a “major leadership shake-up”, following its well-documented woes in the mobile market.
According to The Wall Street Journal, a possible casualty will be Jong-Kyun Shin, who is listed as CEO and Head of IT & Mobile Communication at Samsung Electronics. Boo-Keun Yoon, who holds the same position in the South Korean giant’s home appliance and television unit, could see his remit broadened to include mobile.
It was suggested that increasing Yoon’s portfolio would both prune the management ranks at Samsung as well as enable the company to benefit from convergence opportunities across the connected home and mobile sectors. A similar move is already underway between the mobile and home units in the US.
However, the report also said that so far, this is not a done deal.
The Wall Street Journal said that among the “missteps” under Shin’s leadership was an unquestioning acceptance of bullish projections for Galaxy S5 sales, which meant the company manufactured 20 per cent more of the model than it did of the preceeding Galaxy S4.
But when sales came in below expectations, the company was left with an inventory build-up which needed a heavy marketing push to clear – increasing costs and reducing margin.
According to the paper, in the end Samsung sold about 40 per cent fewer Galaxy S5 devices than expected, with the US the only major market where it outsold the Galaxy S4 in the same period after its launch. In China, sales halved in the comparable periods for the flagships.
Last week, it was reported that Samsung is looking to trim its device portfolio, in order to better focus its efforts on a smaller number of devices, and easing supply chain management.